Demand Management Plan - April 2021 - Ergon Energy
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Demand Management Plan April 2021
Demand Management Plan 2021-22
Contents
Message from our Executive 3
About us 4
Introduction 4
Our network 4
Our core service area 5
Demand management 6
What is it? 6
Customers participating in our DM Program 8
Challenges and opportunities shaping our
strategies and plan 9
Case study: The challenges caused by minimum
demand 12
Our strategy and plan 14
Overview 14
Our principles 14
Case study: Electric vehicles -
Discovering customer charging and energy use 15
Our strategies and initiatives 16
Case study: New load control tariffs deliver
customer and network benefits 17
Our program 18
DM Program budget and targets for 2021-22 20
Covid-19 impacts 20
Energex forecast expenditure and targets 20
Ergon Energy Network forecast expenditure
and targets 20
2
Demand Management Plan 2021-22
Message from our Executive
We are experiencing (DER) such as rooftop solar PV This Plan sets out our five-year
unprecedented rates of customers and Electric Vehicles (EVs). This strategy for our DM program
connecting small scale renewables will support greater DER on during this time of transformation.
such as rooftop solar photovoltaic our network, new technologies Our Plan is only as strong as our
(PV) systems, along with such as batteries and EVs and partnerships with our customers,
large scale renewables (solar access to new markets that offer DM providers and other industry
farms and wind farms) to our incentives to customers for their partners. We therefore look
network. It’s not slowing down; services. Dynamic customer forward to continuing to work
if anything, COVID-19 and the connections for DER will also with our existing and new
conditions of the past year have support distribution networks customers during 2021-22 and
only accelerated the take up of in providing safe and secure beyond; as we energise our
renewables across the network. electricity supply. communities and empower our
customers’ electricity usage
In the past we have highlighted Demand Management (DM) is an
choices and enable their ‘electric
the changing load profiles. The important part of our response
life’.
growing levels of solar generation to transform our network,
across Queensland is now particularly as the amount of
‘hollowing out’ the load during variable renewable generation,
the middle of the day faster and transport electrification and
we are seeing a rapid decline in climate variability increases.
minimum demand during the day. Historically, most of our effort
This has significant implications has been on implementing non-
for the network, as it lowers network DM solutions to address Peter Price
the minimum demand system- peak demand. Now DM has a Executive General Manager
wide and creates local network growing role to play in flattening Engineering
challenges around managing the demand curve by shifting
reverse power flows and voltages, demand to fill the generation
and more broadly, impacts to trough in the middle of the day,
system security. while still lowering the evening
peak. This shift is critical to
To respond, we are transforming
addressing the clear and present
our network into a state-wide
danger to system security
intelligent network, with a focus
associated with the accelerating
on ensuring that our customers
decreases in minimum demand.
can benefit from alternative
DM also complements the efficient
energy solutions and other
roll-out of alternative energy
emerging technologies. Looking
supply solutions, such as Stand
forward, we are introducing active
Alone Power Systems (SAPS) to
connections and transitioning to
customers in remote Fringe-of-
dynamic customer connections
Grid areas.
for Distributed Energy Resources
3
Demand Management Plan 2021-22
About us Introduction Our network
We are proudly part of the
Energy Queensland Group,
Each year Energex and Ergon
Energy Network publish a
7,570
employees
a Queensland Government Demand Management Plan (DM
Owned Corporation, and Plan) to engage and inform our
together we strive to deliver
on our vision to energise
customers, DM providers and
other industry partners on our 33 isolated
systems
Queensland communities planned DM Program for the
and enable our customers’ next five years. It forms part of a
‘electric life’. Energex and suite of strategies to deliver safe,
1.7 million
power poles
Ergon Energy Network’s role affordable, secure and sustainable
3
is to operate the electricity energy solutions. Consistent with
network control
distribution networks across our corporate purpose, the DM centres
Queensland. These networks Plan outlines initiatives that:
cover 1.7 million km2 across
Queensland. Ergon Energy
• improve and maintain safety,
security and reliability – by 2.3 million
Network supplies electricity connected customers
coordinating network and
to homes and businesses over customer resources to work
a vast area covering around
97% of the state – from coastal
together
35,000GWh
• are customer focused – electricity delivered a year
and rural centres to remote
supporting and enabling
communities of outback
Queensland and the Torres
Strait. Energex’s network
customers in their energy
choices 3,354MVA
Total capacity of small-
supplies electricity to homes • are cost efficient – working scale solar energy systems*
and businesses in the South with customers, DM providers
and other industry partners to
East region of the state.
The South East Queensland deliver cost efficient initiatives 660,870
region includes the major to manage peak and minimum customers with solar
demand constraints and energy systems connected*
urban areas of Brisbane,
Gold Coast, Sunshine Coast, improve network utilisation to
Logan, Ipswich, Redlands and keep costs down 809MVA
Total large-scale1 solar
Moreton Bay. • activate the market and energy systems connected*
transition – by paying for DM
services where they provide 5,068MW 737MW
value; and responding to (5pm 3 Feb 2020) (11.30am 27 Sep 2020)
regulatory and market changes Energex Energex
network-wide network-wide
• help achieve the Queensland peak demand# minimum demand
renewable energy target –
by enabling connection of
distributed energy resources
2,660MW 961MW
(6.30pm 16 Dec 2019) (12.30pm 23 Aug 2020)
(DER); integrating renewables
Ergon Energy Ergon Energy
into the network and leveraging Network-wide Network-wide
all market participants peak demand# minimum demand
to manage the technical
challenges in achieving the 7,419 Battery
target Customers installations*
• are fair and equitable – by
unlocking the value of DM 4,492
services to achieve cost efficient Electric vehicles registered*
outcomes for all, not just those
with direct access to DER. 1
Large scale solar PV systems are those
larger than 5MW.
The DM Plan meets Energex * Figures as at January 2021.
and Ergon Energy Network’s #
Data for summer 2020-21 not available at
regulatory requirements under time of publication.
section 127C the Queensland
Electricity Regulation 2006.
4
Our 17 service areas
1 Far North 7 Capricornia 13 Brisbane North
2 Demand
Tropical Coast Management PlanBurnett
8 Bundaberg 2021-22
14 Brisbane Central
3 Herbert 9 Fraser Burnett 15 Brisbane South
4 Flinders 10 Darling Downs 16 Ipswich Lockyer
Boigu Is.
Dauan Is. Saibai Is.
5
6
Pioneer
Central West Our core service area
11 South West
12 Sunshine Coast
17 Gold Coast
Ugar, Stephens Is.
Erub, Darnley Is.
Masig, Yorke Is. Our 17 service areas with 127 depots and offices ensure we are well
Iama, Yam Is.
Mabuiag Is. Mer, Murray Is. placed to energise communities across Queensland.
Badu, Is. Warraber, Is. Poruma,
Coconut Is.
Kubin, St Pauls, Moa Is. 1 Far North 6 Central West 10 Darling Downs 15 Brisbane South
Kiriri, Hammond Is. 2 Tropical Coast 7 Capricornia 11 South West 16 Ipswich Lockyer
Ngurupai, Wasaga, Horn Is.
Waiben, 3 Herbert 8 Bundaberg 12 Sunshine Coast 17 Gold Coast
Thursday Is.
ktown 4 Flinders Burnett 13 Brisbane North
TORRES STRAIT
Seisia 5 Pioneer 9 Fraser Burnett 14 Brisbane Central
New Mapoon
Bamaga
ossman Injinoo
Cairns
2 Umagico Regional network - Ergon Energy Network
Isolated supply - Ergon Energy Network Our 17 service areas
Innisfail
Ergon Energy Retail 1 Far North 7 Capricornia
Tully
am 3 South East Network - Energex 2 Tropical Coast 8 Bundaberg B
Bamaga Depot locations 3 Herbert 9 Fraser Burnet
Townsville Magnetic Is.
4 Flinders 10 Darling Down
Home Hill
ers
Bowen 5 Pioneer
Gympie
11 South West
Mapoon
Proserpine 6 Central West 12 Sunshine Coa
5
Napranum
Lockhart River
Noosa
Pinnacle Mackay
Aurukun Nambour
12
Sarina Maroochydore
Moranbah Coen Caloundra
Clermont
Middlemount
7 Kilcoy Woodford
Yeppoon Pormpuraaw Caboolture
Toogoolawah
caldine
Rockhampton
8 13
SOUTH
Emerald Blackwater Kowanyama Cooktown Redcliffe
Gladstone Esk
Springsure
EAST
Biloela Miriam Vale
Brisbane
ackall Fernvale
Moura
Gununa, Monto
Theodore
Mornington Is.
Gin Gin
Bundaberg
1 Mossman
Gatton
14
2
Childers
Hervey Bay Cairns Ipswich
Biggenden
9
Gayndah Maryborough Mareeba Beenleigh
16 15
Mundubbera
Burketown Atherton
Normanton Innisfail
Charleville Kilkivan Ravenshoe
Doomadgee
Wandoan Surfers Paradise
Murgon Tully
Georgetown
Boonah Beaudesert
17
Kingaroy
3
Roma
Chinchilla Yarraman Ingham QUEENSLAND
Tara Dalby Toowoomba
Brisbane Townsville Magnetic Is.
St George Millmerran
Home Hill
Camooweal Warwick
Julia Creek Charters Towers
Bowen NEW SOUTH WALES
Mt Isa Stanthorpe
Cloncurry
10
Richmond Proserpine
Hughenden
Pinnacle Mackay
5
4 Sarina
Moranbah
NORTHERN Winton
Boulia 6 Clermont
Middlemount
7
Yeppoon
Rockhampton
8
Longreach Barcaldine Emerald Blackwater
Gladstone
Springsure
Bedourie Biloela Miriam Vale
Blackall
Jundah Moura
Monto Bundaberg
SOUTHERN Windorah
Theodore
Gin Gin
Childers
Biggenden Hervey Bay
9
Gayndah Maryborough
Birdsville Mundubbera
Charleville Kilkivan
Quilpie Wandoan
Murgon
Roma Kingaroy
Chinchilla Yarraman
11 Tara Dalby Toowoomba
Brisbane
Cunnamulla St George Millmerran
Warwick
Stanthorpe
10
Figure 1: Our network and service area
5
Demand Management Plan 2021-22
Demand Management
What is it?
DM is part of our suite of solutions This definition recognises that DM must be deployed to match
for network management DM need not be specific to the temporal (i.e. how often and
which may be used instead of removing network constraints what duration) and spatial (i.e.
or in conjunction with network only at times of peak demand. what level of the network and how
expenditure, to ensure an Rather that network constraints many customers are affected)
optimised investment outcome include a variety of technical nature of the network constraint.
and ultimately savings to our issues that the network needs As more DER is connected to our
customers. DM solutions are also to manage, including minimum network, the temporal and spatial
known as non-network solutions, demand and associated issues nature of network constraints
as they provide an alternative to with voltage, system frequency will change. As such, our DM
network infrastructure solutions. and power quality management; capability continues to adapt
In the Energex and Ergon Energy retirement or replacement of an to address new and emerging
Network context, DM often aging asset; redundancy support network constraints; engaging
involves providing incentives to during equipment failure and our customers, DM providers and
our customers and DM providers managing diverse power flows other industry partners to identify
to modify demand and/or and other system security issues. new value propositions.
energy consumption so that we In response to the growing levels
There are several types of DM:
can reduce or delay network of DER on the network, our DM
Demand Response (DR) that
expenditure (i.e. removing or strategy considers our customers’
is used when required; energy
delaying a network constraint). DER assets and the optimisation
efficiency, which results in
of end-to-end investment. DM can
permanent reduction of demand;
also be particularly valuable when
and strategic load growth, which
there is uncertainty in demand
results in permanent increase of
growth forecasts, as it does not
demand, beyond ‘valley filling’
lock in long-term investment. In
(see Table 1). These approaches
these situations, DM can provide
are implemented by customers
considerable ‘option value’ and
or DM providers in exchange for
flexibility.
financial incentives or as required
by a connection standard.
6
Demand Management Plan 2021-22
Description
Demand Response (DR): Temporary modification of load or generation as required (e.g. in response to signal from network or
price signal). There are different types of DR used for wholesale, emergency, network and ancillary services.
Peak shaving – reducing demand during peak period (e.g. using onsite generation
or battery storage).
PeakSmart air conditioning is an example of emergency DR aimed at ‘peak
shaving’.
Load shifting – shifting demand outside of peak demand periods.
Load control tariffs are an example of network DR aimed at ‘load shifting’. They can
also be used for emergency DR.
Valley filling – shifting demand into periods of low demand.
Time of Use (TOU) tariffs and load control tariffs are examples of network and
wholesale DR aimed at ‘valley filling’.
Flexible load and generation – modifying load and generation according to DR
signals, published technical constraint envelopes and energy market prices (e.g.
batteries could be charged during times of low demand).
The Dynamic Customer Connection consultation2, Dynamic Operating Envelopes
(DOE), Vehicle to Grid (V2G) trials and AEMO’s recent Wholesale Demand Response
Mechanism consultation3 are potential future examples of wholesale and/or network
DR platforms, strategies and approach.
Energy Efficiency: Permanent reduction of demand, at peak times and non-peak times.
Energy efficiency – using less electricity to perform the same task.
Strategic flexible load growth: permanent increase of demand (where network capacity allows), beyond ‘valley filling’.
Strategic flexible load growth – encouraging new loads (where network capacity
allows), beyond valley filling. For example, growth in EVs and other modes of
electric transport and electrification of industrial processes.
Table 1: DM Approaches Typical residential customer load profile
Load or generation after demand management measure
Typical solar generation profile
2
See here for Enabling Dynamic Customer Connections for DER, Consultation Paper,
23 December 2020.
3
See here for AEMO Wholesale demand response mechanism consultation.
7
Demand Management Plan 2021-22
Customers participating
in our DM program
The merger of Energex and Ergon Energex Ergon Energy
Number of Customers
Energy Network has strengthened network area network area
our position as the largest DM Customers with load control tariff# 681,721 399,006
program in Australia, with over a
Customers with PeakSmart air conditioners# 83,851 5,485
million customers participating.
Around half (45% in South East Customers who have reduced demand in Target areas* 549 260
Queensland and 53% in regional
Queensland) of our customers #
As at 31 March 2021 and reported to AEMO
*Includes contracted demand response (non-network generation contracts)
have a load control tariff and over
130,000 customers have installed
a PeakSmart air conditioner(s).
See Figure 2.
Premises with controlled load
Premises with PeakSmart air
conditioning
Premises with reduced
demand in Target Areas
Figure 2: Energex and Ergon Energy Network - Demand Management in Queensland
8
Challenges and opportunities
shaping our strategies and plan
Our DM Plan has been developed to address a range of challenges, while harnessing emerging opportunities.
For further information refer to our latest Distribution Annual Planning Reports (DAPR).4
Energy affordability Decreasing minimum Demand outlook –
and value – affordability demand – trend localised demand growth
remains a core concern towards a network with driven by residential
for customers. high penetration of population growth.
• Electricity affordability remains renewable, decentralised, • Peak demand continues to
a concern for many customers asynchronous generation increase, with record network-
– both from a cost of living and has potential to cause wide peak demand days
a business competitiveness recorded in 20198 and 20209
network reliability and
perspective. Electricity bills (Figure 1). Some areas of
remain a top household cost
security issues. Queensland are continuing to
of living concern for customers • The Queensland Government see localised spikes in growth,
with that concern second to has set a target to achieve 50% for example, where new
health/medical costs overall. renewable energy by 2030. property developments are
Over half – 51% – of regional • Queensland has the highest being established.
Queenslanders have indicated penetration of solar PV systems • Areas of the network with
they have moderate-high bill on detached houses (Figure increasing peak demand, may
concern with 44% of customers 1), not only in Australia but create the need for additional
in the South East also indicating compared with any country6. investment as Energex and
moderate-high bill concern5. Solar installations Ergon Energy Network must
• continue to trend upwards - maintain enough capacity and
including residential rooftop voltage stability to supply every
systems, larger systems on home and business on the day
commercial and industrial of the year when electricity
sectors and solar farms. demand is at its maximum.
This growth in PV systems
is leading to an increasing
number of distribution feeders
experiencing reverse power
flows during the middle of the
day. Record network-wide
minimum demand days were
recorded in 20207 (Figure 1).
4
Energex DAPR see here and for Ergon Energy Network DAPR see here
5
Queensland Household Energy Survey 2020
6
Ergon Energy Network, Distribution Annual Planning Report 2020-21 to 2024-25 (pp131)
7
Energex and Ergon Energy networks
8
Ergon Energy Network
9
Energex network
9
Demand Management Plan 2021-22
Growing number of Stand Alone Power Customer uptake of
Electric Vehicles (EVs) Systems (SAPS) costs Internet of Things (IoT)
could increase evening are reducing, making energy management
peak demand. them increasingly cost devices (e.g. Home
• To date, EV uptake has been competitive with network Energy Management
modest (Figure 1). Transport delivered electricity Systems (HEMS)).
modes such as fleet vehicles supply for Fringe-of-Grid • Advancements in the IoT
and public transport are being
customers. will provide opportunities
increasingly electrified. for energy management.
• Many of our customers in
• If EV charging is unmanaged, Machine learning, automated
remote areas of Queensland
the additional load on the decision making and seamless
(Fringe-of-Grid) are serviced
network is likely to coincide communication between
by very long lengths of
with the existing evening peak. people, devices and data
network. Around 4% of Ergon
• Vehicle to Grid (V2G) charging Energy Network’s customers will enable remote control of
technology, while at an early are provided electricity by appliances, and for devices to
stage of development, is 65,000km of line. In some automatically manage power to
expected to provide a range of cases, SAPS such as renewable different appliances/devices to
energy services including DR in generation and energy storage optimise electricity usage.
the future. can provide a cost-efficient • Currently there is moderate
alternative to network for our interest in HEMS services, with
Increasing climate Fringe-of-Grid customers. We the focus on receiving personal
variability could increase continue to support legislation recommendations on how to
frequency of heat waves, that facilitates both third save11.
party-led and network-led
bushfires and other
SAPS options so that improved Introduction of innovative
severe weather events. cost-to-serve outcomes can be tariffs (e.g. time varying
• A changing climate is leading to achieved in our Fringe-of-Grid
changes in the frequency and
and additional load
locations.
intensity of extreme weather control tariffs).
and climate events, including Customer uptake of • New network tariff structures
extreme temperatures, greater have been released as part
batteries. of the transition towards an
variations in wet and dry
weather patterns (e.g. flooding, • To date, uptake of residential intelligent network. Three
drought), bush fires, cyclones, battery energy storage systems new load control tariffs for
storms and storm surges, as has been low (Figure 1). The business have been introduced,
well as changing oceans and average capacity of a home in addition to the two existing
sea levels. This necessitates battery storage system is ones for residential. Recent
increasing network adaption around 10kWh. tariff changes have also
and resilience (e.g. successive • Investment in batteries is resulted in 12 Time of Use
hot days causing peak predicted to grow as their (TOU) tariffs being available
demand), while also ensuring costs decrease. Around 29% to business and residential
we can respond quickly and of Queensland households customers in Queensland.
safely during and after extreme stated their intention to install a
weather events. battery in their homes over the
next 10 years10.
• Batteries for network use
(grid-scale) are currently
being investigated to address
minimum demand and for use
in Fringe-of-Grid and isolated
networks areas.
10
Queensland Household Energy Survey 2020
11
Queensland Household Energy Survey 2020
10Customer uptake of
advanced digital meters
(ADMs).
• ADMs are progressively
being rolled out for electricity
customers in Queensland.
ADMs are capable of two-way
communication, where they can
send and receive data. They
provide opportunities for both
increasing network visibility
enabling DR from downstream
appliances.
Development and
implementation of
Future Grid (network)
capabilities that
complement existing
load control assets and
systems (e.g. Audio
Frequency Load Control
(AFLC)).
• Future grid (network)
capabilities are being
developed that provide
visibility, constraint
identification and definition,
and communication with
external systems. This will
enable networks to interact
with cloud-based DR and other
network services.
• The capabilities will
complement existing load
control assets and systems.
Energex and Ergon Energy
Network maintain AFLC
equipment across the State
that facilitates a large footprint
of load control tariffs and
services being available for
network and customer use. We
are continuing to monitor and
manage these assets to ensure
that they both continue to
provide value.
11Demand Management Plan 2021-22
CASE STUDY
The challenges caused by minimum demand
The speed at which customers Maximum operational demand We have been implementing
are adopting rooftop PV, and has shifted to later in the day solutions in response to this
larger-scale solar systems are by an hour or two, when solar challenge and are building on these
connecting to our networks is PV contribution is falling, but by exploring additional initiatives
unprecedented. When customers’ temperatures remain high. to ensure positive outcomes for
energy needs, particularly during Minimum system demand is Queensland customers. We are
daylight hours, are being met by increasingly posing a risk to system actively pursuing innovative ways
their own DER, such as solar PV, security, as it will be difficult with to address the challenges of
this results in low demand for the current mix of generation to integrating DER to our networks.
energy from the network. At the maintain stable operations through
same time, some solar PV systems the middle of the day and ramp up
are exporting surplus energy scheduled generation to meet the
12
Refer here to 2020 Electricity Statement
of Opportunities published by AEMO,
into the network. Consequently, evening peak. August 2020
we are seeing lower operational
This is a national issue which is
minimum demand and greater
challenging the business models
volumes of reverse power flows.
and operational frameworks of
Minimum demand is the lowest our distribution networks. In the
level of demand from the network recent 2020 Electricity Statement
at any given time. 2020 saw record of Opportunities published by
minimum network-wide demands the Australian Energy Market
with year-on-year reductions, Operator (AEMO)12, distribution
followed months after by record networks were urged to commence
peak demands. This is driving development of programs to
increased rates of reverse flows, implement emergency PV shedding
which will rival peak demand flows capabilities, as a ‘backstop’ system
in coming years in some places. security measure.
Across the Energex and Ergon
Energy Network, around 20% of
medium voltage (MV) distribution
feeders are experiencing reverse
power flows.
12Demand Management Plan 2021-22
Solar PV Capacity Minimum Demand
1600 2020-05-03 11:30, 2500
953 MW,
1400
27%
PV Capacity (MW)
2000
1200
2019-05-06 11:30,
Load (MW)
1000 1309 MW,
1500
12%
800
600 2020-09-27 11:30, 1000
737 MW,
400 23% 500
200
0 0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Year
Figure 3: Energex historical minimum demand and solar PV capacity
Solar PV Capacity Minimum Demand
2020-05-03 13:00,
1400 1074 MW, 2000
1800
1200
PV Capacity (MW)
1600
1000 1400
Load (MW)
1200
800
1000
600 800
2020-08-23 12:30,
400 961 MW, 600
10%
400
200
200
0 0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Year
Figure 4: Ergon Energy Network historical minimum demand and solar PV capacity
FY2013 FY2020 FY2013 FY2020 FY2021
6000
2020-02-03 17:00,
5,068 MW
5000
4000
Load (MW)
2012-12-03 16:30,
4,450 MW
3000
2000
2020-05-03 11:30,
953 MW
1000
2013-03-31 03:30,
1,499 MW 2020-09-27 11:30,
737 MW
0
00:00:00
00:30:00
01:00:00
01:30:00
02:00:00
02:30:00
03:00:00
03:30:00
04:00:00
04:30:00
05:00:00
05:30:00
06:00:00
06:30:00
07:00:00
07:30:00
08:00:00
08:30:00
09:00:00
09:30:00
10:00:00
10:30:00
11:00:00
11:30:00
12:00:00
12:30:00
13:00:00
13:30:00
14:00:00
14:30:00
15:00:00
15:30:00
16:00:00
16:30:00
17:00:00
17:30:00
18:00:00
18:30:00
19:00:00
19:30:00
20:00:00
20:30:00
21:00:00
21:30:00
22:00:00
22:30:00
23:00:00
23:30:00
Time
Figure 5: Energex historical maximum and minimum demand daily profile
FY2013 FY2020 FY2013 FY2020 FY2021
3000
2012-12-17 15:30, 2019-12-16 18:30,
2,428 MW 2,660 MW
1500
2000
Load (MW)
1500
1000
2020-05-03 13:00,
2012-12-25 04:00, 1,074 MW
500 990 MW 2020-08-23 12:30,
961 MW
0
00:00:00
00:30:00
01:00:00
01:30:00
02:00:00
02:30:00
03:00:00
03:30:00
04:00:00
04:30:00
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06:00:00
06:30:00
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20:30:00
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21:30:00
22:00:00
22:30:00
23:00:00
23:30:00
Time
Figure 6: Ergon Energy Network historical maximum and minimum demand daily profile
13Demand Management Plan 2021-22
Our Strategy and Plan
Overview Our principles
The DM Plan for 2021-22 sets out Our six guiding principles,
how we will continue to work that underpin the DM Plan, are
with our customers, DM providers based on the Energy Network
and other industry partners over Australia’s balanced scorecard
the coming year. Our strategy is in the Electricity Network
ultimately about reducing network Transformation Roadmap
costs through implementing (ENTR)13. These principles have
effective and efficient DM. We will been used to prioritise our
build on our existing initiatives initiatives and activities. See
and deliver on our goal of Figure 3.
providing a secure and reliable
network. We will continue to listen
13
https://www.energynetworks.com.
to our customers, DM providers au/projects/electricity-network-
and other industry partners and transformation-roadmap/
continuously strive to innovate to
have a responsive DM Program.
Are cost
Are customer efficient – working
focused – supporting with customers, DM
and enabling providers and industry
customers in their partners to deliver cost
Help achieve energy choices efficient initiatives to
the Queensland manage peak and minimum
renewable energy target – demand constraints and
by enabling connection of improve network
DER, integrating renewables utilisation to keep
into the network and costs down
leveraging all market
participants to manage Activate
the technical challenges the market and
in achieving the transition – by paying
target for DM services where
they provide value
and responding to
regulatory and
LO AL
market changes
O GY
V
W UE
TI R
ER D
N
SI E
N N
B ER
A NE
IL V
S
LS IC
TR EA
FO ES
L
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R
CUSTOMER CHOICE
AND CONTROL
SA AN
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Fair and
Improve and equitable - by
maintain safety, unlocking the value
security and reliability of DM services to
– by coordinating achieve cost efficient
network and customer outcomes for all, not
resources to work just those with
together direct access
to DER
Figure 3: Our principles
14Demand Management Plan 2021-22
CASE STUDY
Electric Vehicles (EVs): Discovering
customer charging and energy use behaviours
In May 2020, we launched Valuable insights gained to date, • Not all participants fully
the Electric Vehicles (EV) include: charge their vehicles. In fact,
SmartCharge program funded • participants charge their EVs on in one month, 30% of all EV
by the Demand Management average around 8.4kWh per day, participants did not charge
Innovation Allowance Mechanism which is approximately 45% of beyond 90%. This suggests EV
(DMIAM). This program researches average current daily household owners are mindful of protecting
potential impacts associated with usage their battery life as much as
EVs charging on the network possible
• the average distance travelled
and aims to provide a better • Apart from overnight charging,
per vehicle is approximately
understanding of EV owners’ there appears to be plenty of
37km per day (noting there are
experiences, how EV owners use EV owners charging across the
some extensive travellers in the
their vehicle and their approach to middle of the day. Given a large
program)
‘refuelling’ with electricity. percentage of participants have
• not all users charge their
The six-month recruitment solar PV, this suggests they
EV’s regularly. From a load-
phase of the program has been are taking advantage of using
management perspective, it
completed with 197 EV owners solar to charge their vehicle. As
will be challenging to predict
now participating (80% from further data is collected, it will
EV charging times. It is also
South East Queensland and be clearer if working from home
expected that charging
20% from regional Queensland). arrangements due to COVID-19
behaviour will change with time
Around 80% of participants have have influenced charging
as familiarity and confidence
rooftop solar PV and almost 20% behaviour.
of driving range increases and
have battery storage at home. The changes in charger capacity Additional qualitative research
participants include EV owners occur during the EV SmartCharge
who live in apartment buildings; • most participants are achieving program will add detail to the
have more than one EV at their over 4km from each kWh charging data and will allow us to
address; and those who use their consumed (not including energy better forecast demand for EVs
vehicle for commercial use. from regenerative braking) across the electricity network.
• around 60% of the EV charging
is at home and 40% away from
home, which includes public
charging stations
15Demand Management Plan 2021-22
Our strategies and initiatives
Our Program
Customer Outcomes
Strategy DM Initiatives –
(2025)14
what we will do
Ensure efficient investment decision making Broad Based Downward pressure
on network prices for
We will continue to engage with customers and DM providers to seek DM Targeted
customers, while supporting
solutions to provide cost-effective alternatives to network options.
choice as volumes of
This approach will enable us to leverage investment across the electricity DER and EVs continue to
supply chain and deliver efficient, well planned network expenditure and increase.
apply downward pressure to network prices in the longer term.
Active customer response enablers DM Development Increased opportunity for
customers to be rewarded
We will maintain direct control of customer loads using our existing Audio
for use of their DER to
Frequency Load Control (AFLC) capability. We will complement this
support the network, either
capability, where cost efficient, by procuring and dispatching DR.
directly or through an
The procurement and dispatch of DR will require investment in intelligent aggregator.
network technologies and digital platforms. This will be implemented as
Best practice DER
part of our broader ‘Intelligent Grid Enablement’ investment.
connection standards enable
This enhanced capability will reduce network augmentation requirements greater customer choice and
and increase DER hosting capacity. balance cost and risk13.
Incentivising customer efficiency Broad Based Local DM programs and
tariffs give customers
We will continue to provide incentives to customers and DM providers to Targeted
incentives for more efficient
provide DM solutions as part of our approach for delivering efficient non
network usage.
network options to defer, avoid or complement network investment.
Customer experience is
In the medium term, ’smart’ DER (e.g. demand responsive batteries or
improved through online
EVs) are expected to provide an increasing proportion of DM solutions,
interactions.
either directly or via DR aggregators.
Manage two-way energy flows and minimum demand DM Development Increased DER hosting
capacity while maintaining
We will trial and test DM solutions to increase DER hosting capacity while
reliability and power quality
maintaining reliability and power quality performance at statutory levels.
performance at current
This is in line with our customer expectations and the Queensland statutory levels.
Government target of achieving 50% renewable energy by 2030.
Transforming supply at the Fringe-of-Grid DM Development Communities benefit from
SAPS/microgrid conversions
We will continue to look for opportunities for DM to reduce the cost of
in remote Queensland.
electricity supply in remote areas.
DM can be used to reduce the size and cost of customer DER and SAPS
and form part of an integrated, cost-effective alternative to traditional
network solutions.
Support our Program by investment in innovation Demand Learnings from trials and
Management projects are implemented
We will continue to undertake innovative trials and projects to test and
Innovation to deliver contemporary
validate DM solutions. These trials will be supported by funding available
Allowance and cost-effective network
under DMIAM and will be targeted to accelerate future DM capabilities.
Mechanism services to customers. Refer
(DMIAM) to Energex DMIAM report
here16 and Ergon DMIAM
report here17.
14
These customer outcomes are from the Our Future Grid Roadmap (our internal overarching strategy).
15
See our recent consultation paper here on Enabling Dynamic Customer Connections for DER, December 2020
16
https://www.energex.com.au/__data/assets/pdf_file/0008/817460/Demand-Management-Innovation-Allowance-annual-report-2019-20.pdf
17
https://www.ergon.com.au/__data/assets/pdf_file/0006/817629/Demand-Management-Innovation-Allowance-Report-2019-20.pdf
16Demand Management Plan 2021-22
CASE STUDY
New load control tariffs
deliver customer and network benefits
Ergon Energy Network has on those findings Ergon Energy Dale Hollis, Bundaberg Regional
been working with industry Network developed three new Irrigators Group said… “many of
representatives to explore load control tariffs – small primary our members worked at length
alternative tariff options that load control and large primary with EQL in developing and
reduce electricity costs and and large secondary load control trialling T33 as a standalone
support tariff transition from tariffs, which gained regulatory dynamic load control tariff for
obsolete tariffs. Commencing approval from July 2020. irrigation pumps. With support
in 2018, with funding from the from EQL, the Australian Energy
These new load control tariffs
Queensland Government, and in Regulator, Queensland Farmers
will provide further loads under
partnership with Ergon Energy Federation and customers, we saw
control to assist us in managing
Retail, Ergon Energy Network the introduction of additional new
our network. This is particularly
implemented several trials with opt-in retail dynamic controlled
useful in areas with high numbers
the farming sector to evaluate if load tariffs for 2020-21. This has
of non-domestic customers
irrigators could operate under load been a win-win outcome that
where there has been low take-
control tariffs. recognises the water energy
up of load control tariffs. Small
nexus.”
As load control tariffs have and large business customers
predominantly been utilised by now have an extra tariff option
residential customers connecting to consider, providing greater
appliances like water heaters, choice and control. For a typical
pool pumps and air conditioners, small customer using around
a further aim of the trials was 50,000kWh per year, who has
to understand any technical operations that are suitable to
issues that may be encountered move to a load control tariff, this
when connecting much larger, could result in savings of up to
non-residential equipment to $3,500 per year.
interruptible tariffs.
The trials proved that load control
tariffs could be used by non-
domestic customers for operations
that were compatible with being
interrupted temporarily. Based
17Demand Management Plan 2021-22
Our program
DM Initiative 2021-22 2021-22 Focus areas 2021-26
Initiative: Broad Based
This initiative is available to residential and small Existing • Continue to reduce costs of delivery Continue
business customers across the whole network. • Continue to align Ergon and Energex programs
It delivers direct control of loads during periods
of extreme demand or emergency response, • Enhance customer and community experience
preventing area problems and network outages. through improvements to incentive process
• Continue to engage with installers to promote
Incentives are provided to customers who enrol the PeakSmart air conditioning program and load
in the PeakSmart air conditioning program or control tariffs.
connect their appliances to load control tariffs.
Incentives are also given to industry partners who
install PeakSmart enabled air conditioners.
Initiative: Targeted
This initiative is available to customers and DM Existing • Increase our already substantial market Continue
providers who can deliver DM solutions in specific engagement with customers and DM providers, so
areas of the network identified as having future that more DM solutions are put forward to address
network constraints. network constraints20.
Market engagement is undertaken to seek DM
solutions from customers and DM providers.
Incentives are provided to customers or DM
providers to provide DM solutions. Refer here18
for Energex and here19 for Ergon Energy for more
information.
18
https://www.energex.com.au/home/control-your-energy/cashback-rewards-program/cashback-rewards-for-business/eligible-areas
19
https://www.ergon.com.au/network/manage-your-energy/reward-programs/cashback-rewards
20
Our Demand Side Engagement Strategy and Register are available for Energex here and Ergon Energy Network here
18Demand Management Plan 2021-22
DM Initiative 2021-22 2021-22 Focus areas 2021-26
Initiative: DM Development
This initiative drives Existing Minimum Demand Continue
continuous improvement • Review DM solutions to address minimum demand including: enabling direct
of existing initiatives control of rooftop solar; moving additional hot water heating into the middle
and enabling future DM of the day using existing load control system (LCS); encouraging customers
capability. to shift more energy use to the middle of the day and informing households
and businesses on the benefits of installing batteries or utilising load control
tariffs for EV charging.
• Undertake survey of PV installers and customers to better understand
installer advice and customer views on maximising use of solar generation.
Tariffs
• Support customer connection to new load control tariffs for more mutually
beneficial customer and network outcomes.
Fringe-of-Grid
• Support development of a tool to identify high cost to serve locations where
alternative supply solutions may be cost effective
• Investigate DM opportunities for Fringe-of-Grid customers.
Intelligent Grid Enablement
• Oversee implementation of Load Control Strategy as part of broader future
network investment.
• Support development of Low Voltage Distributed Energy Resource
Management System (LVDERMS) and other related systems to orchestrate
DR.
• Support finalisation of AS/NZS 4755.2. This Standard provides framework
for DR from customer appliances (including air conditioners, EVs, hot water
systems and pool pumps).
Electric Vehicles
• Undertake engagement with customers and industry and analyse EV
charging data to encourage network friendly charging21.
• Promote to customers and key industry channels the optimum charging
for customer and network outcomes that avoids contributing to network
constraints.
Smart developments
• Partner with channels to market for DR outcomes in greenfield developments
(including multi-unit dwellings).
Initiative: Demand Management Innovation Allowance Mechanism (DMIAM)
The initiative supports Existing Tariffs Continue
future energy choices • Implement capacity tariff trial.
and DM capabilities
that reduce long term Intelligent Grid Operations
network costs. • Trial Direct Load Control (DLC) and aggregated DR services via third parties
(eg. Retailers, HEMs providers).
A suite of innovative
trials and projects to • Increase network hosting capacity of DER through improved network
test and validate DM visibility and dynamic operating envelopes.
products and processes Electric Vehicles
are funded via DMIAM. • Gather data on actual electric vehicle customer charging and energy use
Every year progress • Exploring feasibility of a Vehicle to Grid (V2G) functionality trial.
on DMIAM projects are Fringe-of-Grid
published, refer to our
annual DMIAM reports • SAPS customer pilots
(Energex22/Ergon Energy • Partnering with customers to optimise DER in Fringe-of-Grid areas.
Network23). Commercial and industrial DR
• Trial DR from industrial customers and water/sewerage utilities in rural and
remote areas.
• Trial DR on commercial air conditioning plant (thermal battery) in urban areas
21
For more information see here for our Network Electric Vehicles Tactical Plan
22
https://www.energex.com.au/__data/assets/pdf_file/0008/817460/Demand-Management-Innovation-Allowance-annual-report-2019-20.pdf
23
https://www.ergon.com.au/__data/assets/pdf_file/0006/817629/Demand-Management-Innovation-Allowance-Report-2019-20.pdf
19Demand Management Plan 2021-22
DM Program budget
and targets for 2021-22
COVID-19 impacts
Slower economic conditions have seen an observable flattening of the uptake of the Broad Based Initiative during
2020-21 across Queensland. Given this and uncertainty around future impacts of COVID-19, a more conservative
approach has been taken towards target setting for 2021-22.
Energex forecast expenditure and targets
The forecast expenditure to Operating Capital Total Demand
implement Energex’s DM Program Initiative Expenditure Expenditure Expenditure Management $/kVA
for 2021-22 is estimated at $5.69 ($,000) ($,000) ($,000) (MVA)
million (Table 3). The table also
Broad Based 3,296 - 3,296 13.5 244
provides the breakdown of
performance targets for each Targeted 1,144 - 1,144 14.4 79
initiative. Future year MVA
demand reductions may also DM
1,249 - 1,249 n/a n/a
change year to year dependent Development
on program focus and customer Total for
5,689 - 5,689 27.9 n/a
uptake of new technologies. DM Program
DMIAM 1,100 - 1,100 n/a n/a
Table 3: Energex direct costs (excludes overheads)
Ergon Energy Network forecast expenditure and targets
The forecast expenditure Operating Capital Total Demand
to implement Ergon Energy Initiative Expenditure Expenditure Expenditure Management $/kVA
Network’s DM Program for 2021- ($,000) ($,000) ($,000) (MVA)
22 is estimated at $4.51 million
Broad Based 573 - 573 2.0 283
(Table 4). The table also provides
the breakdown of performance Targeted 2,947 - 2,947 30.2 98
targets for each initiative. Future
year MVA demand reductions DM
989 - 989 n/a n/a
may also change year to year Development
dependent on program focus Total for
4,510 - 4,510 32.2 n/a
and customer uptake of new DM Program
technologies. DMIAM 1,100 - 1,100 n/a n/a
Table 4: Ergon Energy direct costs (excludes overheads)
20Demand Management Plan 2021-22
21ergon.com.au
energex.com.au
Ergon Energy
PO Box 1090
Townsville QLD 4810
Energex Limited
2-21-0196
GPO Box 1461
Brisbane QLD 4001You can also read
